Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Irish Govt guarantees banks for two years

«1345678

Comments

  • Closed Accounts Posts: 14,575 ✭✭✭✭FlutterinBantam


    It had to be done,in my opinion otherwise the whole system could have collapsed.

    What I got from it was:

    All deposits in banks operating in Ireland guaranteed up to €100k per bank

    All lending by 6 main Irish banks guaranteed for two years.

    Exposure to the taxpayer around 400 billion, however obviously the Govt. believe this will not happen as our GNP is around 150 billion.

    Markets in banking shares rose sharply today.

    Losers ... who knows, hopefully not the taxpayer
    Winners... depositors who can now have confidence and not cause a run on money by withdrawing their deposits.


  • Registered Users, Registered Users 2 Posts: 7,988 ✭✭✭constitutionus


    just out of interest IF this is needed, where's the cash coming from?

    this "bank charge" wont cover it as by its very nature its the fecking banks that NEED the cash and were already breaking ECB rules to pay the public sectors wage this year borrowing 10 billion.

    if we REALLY need TEN times the national debt we're not only are fcuked as a country were out of the euro too.

    the man may as well promise to give us all a million quid for all this is worth. christ the money involved is LARGER than what the yanks are looking for in the states !


  • Closed Accounts Posts: 14,575 ✭✭✭✭FlutterinBantam


    That's the bet the Govt. are taking, that it will never be needed, because if it is, we are all fooked.


  • Registered Users, Registered Users 2 Posts: 32,136 ✭✭✭✭is_that_so


    From what I heard this morning there is no "cash" but a guarantee to banks. The main aim behind it is to allow banks to borrow on the interbank market so other banks lending Irish banks money are guaranteed that the Govt will pick up the bill if the banks default. The banks will have to pay a charge for this. As someone over in Economics has commented, if we get to that €400/€500bn cost it won't just be Govt debt we'll have to worry about.


  • Registered Users, Registered Users 2 Posts: 43,039 ✭✭✭✭SEPT 23 1989


    this had to happen or the Irish economy would have collapsed through lack of lending but it disgusts me (a taxpayer)to have to bail out these people:mad:


  • Advertisement
  • Registered Users, Registered Users 2 Posts: 1,179 ✭✭✭mobby


    Anyone know what the story is with the likes of First Active, who i have me morgage with and a few bob in savings.
    Not mentioned in the list of banks guaranteed?


  • Registered Users, Registered Users 2 Posts: 43,039 ✭✭✭✭SEPT 23 1989


    banks are only covered if their headquarters are in the Republic


  • Registered Users, Registered Users 2 Posts: 32,136 ✭✭✭✭is_that_so


    this had to happen or the Irish economy would have collapsed through lack of lending but it disgusts me (a taxpayer)to have to bail out these people:mad:

    This is not a bailout. Banks are getting no money. What it is, is an attempt to stabilise our financial system.


  • Registered Users, Registered Users 2 Posts: 7,988 ✭✭✭constitutionus


    yup, NIB rabbo et al are excluded from this.


  • Closed Accounts Posts: 14,575 ✭✭✭✭FlutterinBantam


    Yes banks only covered if Hq in Republic

    Deposits covered up to 100k is bank operates in republic.. eg Rabo etc.


  • Advertisement
  • Registered Users, Registered Users 2 Posts: 43,039 ✭✭✭✭SEPT 23 1989


    is_that_so wrote: »
    This is not a bailout. Banks are getting no money. What it is, is an attempt to stabilise our financial system.

    right so its not exactly a bail out but you do think the main banks here could have lasted if this did not happen their stock worth nothing and no other bank lending any irish bank any more money?


  • Closed Accounts Posts: 14,575 ✭✭✭✭FlutterinBantam


    Irish banks are well capitalised, however such is the size of our economy,relative to the global problems, no bank could sustain continuing meltdown on the global markets.


  • Closed Accounts Posts: 2,972 ✭✭✭SheroN


    Does this guarantee cover money in my current account?


  • Closed Accounts Posts: 14,575 ✭✭✭✭FlutterinBantam


    Yes would be my answer.


  • Registered Users, Registered Users 2 Posts: 7,588 ✭✭✭Bluetonic


    SheroN wrote: »
    Does this guarantee cover money in my current account?
    If you've over 100k in a current account you really need some financial education.

    As for your question without you telling us where you current account resides no one can answer that.


  • Closed Accounts Posts: 2,972 ✭✭✭SheroN


    Bluetonic wrote: »
    If you've over 100k in a current account you really need some financial education.

    As for your question without you telling us where you current account resides no one can answer that.

    If i have over 100k in my current account. Imagine what I have in my savings! ;)

    Current account is with AIB.


  • Closed Accounts Posts: 20,009 ✭✭✭✭Run_to_da_hills


    Bluetonic wrote: »
    If you've over 100k in a current account you really need some financial education.

    Either that or else hes loaded :D


  • Closed Accounts Posts: 16,165 ✭✭✭✭brianthebard


    Yay everything's ok again we can start spending!!!!


  • Registered Users, Registered Users 2 Posts: 32,136 ✭✭✭✭is_that_so


    right so its not exactly a bail out but you do think the main banks here could have lasted if this did not happen their stock worth nothing and no other bank lending any irish bank any more money?

    It's not a question of stock price, although shareholders have really lost out, including the likes of pensions funds. This addresses the whole financial system, the future of the economy and the ability of banks to borrow in order to provide loans to the rest of the economy. It's also been described as pre-emptive and will take away some of the fear/gambling on Irish bank shares. There are also a suggestion that the plan may serve as a template for other countries.


  • Closed Accounts Posts: 14,575 ✭✭✭✭FlutterinBantam


    is_that_so wrote: »
    It's not a question of stock price, although shareholders have really lost out, including the likes of pensions funds. This addresses the whole financial system, the future of the economy and the ability of banks to borrow in order to provide loans to the rest of the economy. It's also been described as pre-emptive and will take away some of the fear/gambling on Irish bank shares. There are also a suggestion that the plan may serve as a template for other countries.


    A big issue now will be fiscal rectitude from the banks ,as now that they are "underwritten" by Ireland inc, we must make sure they don't act the cowboy with money, knowing the safety net is in place for two years.

    Also the very geezers who made megabucks from the boom and faced dramatic down turn , the share option dudes, ironically, benefit from the buttressing by the Govt.(You and me) as the share price rises again.

    A lot of work done....................................


  • Advertisement
  • Closed Accounts Posts: 8,542 ✭✭✭Captain Darling


    Where do credit unions fit into all this?


  • Closed Accounts Posts: 14,575 ✭✭✭✭FlutterinBantam


    I would say they are not included, I could be wrong,but I would expect that a members institutions and not on the open market that they are not.


  • Closed Accounts Posts: 2,717 ✭✭✭Nehaxak


    Can't say I'd even pretend to understand everything in regards all of this but I can be sure to understand that if something like this was not done today then we could possibly have seen the beginnings of a complete collapse of the stock market here (Mr Isaac Index) over the next couple of days/weeks and the losses would far have outweighed the cost of this package.
    To think that it would not eventually (or in some cases even quickly) effect the rest of us all in the country is naive.
    What pisses me off though is that this has to be done in the first place.

    On one hand I'm annoyed because banks and financial institutions let themselves get into this mess and we the people have to bail them out with our tax money but on the other hand I know that if we didn't we'd all be fecked sooner or later. I think the banks themselves know this all too well, cute buggers that they are but really, it's a kind of socialist type of ideal to bail out capitalism when it fails.


  • Closed Accounts Posts: 8,542 ✭✭✭Captain Darling


    I would say they are not included, I could be wrong,but I would expect that a members institutions and not on the open market that they are not.

    If they had a run on their money it would be fairly lethal, as far as i can make out they they make their money from giving loans to their members, and probably use the members shares as security. Seems kind of a dodgy situation to me.


  • Closed Accounts Posts: 14,575 ✭✭✭✭FlutterinBantam


    Nehaxak wrote: »
    Can't say I'd even pretend to understand everything in regards all of this but I can be sure to understand that if something like this was not done today then we could possibly have seen the beginnings of a complete collapse of the stock market here (Mr Isaac Index) over the next couple of days/weeks and the losses would far have outweighed the cost of this package.
    To think that it would not eventually (or in some cases even quickly) effect the rest of us all in the country is naive.
    What pisses me off though is that this has to be done in the first place.

    On one hand I'm annoyed because banks and financial institutions let themselves get into this mess and we the people have to bail them out with our tax money but on the other hand I know that if we didn't we'd all be fecked sooner or later. I think the banks themselves know this all too well, cute buggers that they are but really, it's a kind of socialist type of ideal to bail out capitalism when it fails.

    That post shows you have a very good understanding of the scenario,very succinctly put.


  • Closed Accounts Posts: 794 ✭✭✭hot2def


    Nehaxak wrote: »

    On one hand I'm annoyed because banks and financial institutions let themselves get into this mess and we the people have to bail them out with our tax money .

    personally, *I'm* annoyed at the huge number of eejits, not much older than myself (27-33ish) who, upon leaving school/college decided that life owed them their own house, huge car and a rake of kids they can't actually afford, but they just had them anyway.

    Thanks to these morons the economy is going south, and despite the fact that I knew better than to live beyond my means and don't have one red cent of debt, I get to worry about my livelihood.


    i heard them talking on the radio the other day about how "Lidl is actually ok to shop in" and some bint talking about how she couldn't afford Tesco now. Hey Love, you couldn't actually afford it before either, that's the problem.


  • Registered Users, Registered Users 2 Posts: 15,094 ✭✭✭✭javaboy


    hot2def wrote: »
    personally, *I'm* annoyed at the huge number of eejits, not much older than myself (27-33ish) who, upon leaving school/college decided that life owed them their own house, huge car and a rake of kids they can't actually afford, but they just had them anyway.

    The banks just repossessed my neighbour's house, huge car and rake of kids.

    Shame. It was a nice car.


  • Registered Users, Registered Users 2 Posts: 86,729 ✭✭✭✭Overheal


    javaboy wrote: »
    The banks just repossessed my neighbour's house, huge car and rake of kids.

    Shame. It was a nice car.
    You didn't try and barter your ma to get it back?


  • Registered Users, Registered Users 2 Posts: 15,094 ✭✭✭✭javaboy


    Overheal wrote: »
    You didn't try and barter your ma to get it back?

    No. It was a Mercedes SL500.


  • Advertisement
  • Registered Users, Registered Users 2 Posts: 86,729 ✭✭✭✭Overheal


    you mighthave got the wheels back for her. maybe a couple of the doors if she was a milf.


Advertisement